Consider the December transactions for Crystal Clear Cleaning that were presented in Chapter 5. (Cost data have
Question:
Consider the December transactions for Crystal Clear Cleaning that were presented in Chapter 5. (Cost data have been removed from the sale transactions.) Crystal Clear uses the perpetual inventory system.
Dec. 2 Purchased 1,000 units of inventory for $4,000 on account from Sparkle Company on terms, 5/10, n/20.
5 Purchased 1,200 units of inventory from Borax on account with terms 4/10, n/30. The total invoice was for $6,000, which included a $300 freight charge.
7 Returned 300 units of inventory to Sparkle from the December 2 purchase.
9 Paid Borax.
11 Sold 500 units of goods to Happy Maids for $5,500 on account with terms n/30.
12 Paid Sparkle.
15 Received 100 units with a sales price of $1,100 of goods back from customer Happy Maids.
21 Received payment from Happy Maids, settling the amount due in full.
28 Sold 500 units of goods to Bridget, Inc. on account for $6,500. Terms 1/15, n/30.
29 Paid cash for utilities of $550.
30 Paid cash for Sales Commission Expense of $214.
31 Received payment from Bridget, Inc., less discount.
31 Recorded the following adjusting entries:
a. Physical count of inventory on December 31 showed 800 units of goods on hand.
b. Depreciation, $150.
c. Accrued salaries expense of $2,100.
d. Estimated sales returns of $1,500, with cost of $540.
e. Prepared all other adjustments necessary for December (Hint: You will need to review the adjustment information in Chapter 3 to determine the remaining adjustments). Assume the cleaning supplies left at December 31 are $50.
Requirements
1. Prepare perpetual inventory records for December for Crystal Clear Cleaning using the FIFO inventory costing method. You must calculate the cost of goods sold on the 11th, 28th, and 31st (adjusting entry a). Round per unit costs to two decimal places.
2. Journalize the transactions for December 11th, 28th, and 31st (adjusting entry a only) using the perpetual inventory record created in Requirement 1.
Step by Step Answer:
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura